Data & Business Process Services Q2 Earnings: Planet Labs (NYSE:PL) is the Best in the Biz

Wrapping up Q2 earnings, we look at the numbers and key takeaways for the data & business process services stocks, including Planet Labs (NYSE:PL) and its peers.

A combination of increasing reliance on data and analytics across various industries and the desire for cost efficiency through outsourcing could mean that companies in this space gain. As functions such as payroll, HR, and credit risk assessment rely on more digitization, key players in the data & business process services industry could be increased demand. On the other hand, the sector faces headwinds from growing regulatory scrutiny on data privacy and security, with laws like GDPR and evolving U.S. regulations potentially limiting data collection and monetization strategies. Additionally, rising cyber threats pose risks to firms handling sensitive personal and financial information, creating outsized headline risk when things go wrong in this area.

The 10 data & business process services stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was 0.6% below.

In light of this news, share prices of the companies have held steady as they are up 4.8% on average since the latest earnings results.

Best Q2: Planet Labs (NYSE:PL)

Pioneering the concept of "agile aerospace" with hundreds of small but powerful satellites, Planet Labs (NYSE:PL) operates the world's largest fleet of Earth observation satellites, capturing daily images of our planet to provide insights on deforestation, agriculture, and climate change.

Planet Labs reported revenues of $73.39 million, up 20.1% year on year. This print exceeded analysts’ expectations by 11.2%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS estimates and full-year revenue guidance exceeding analysts’ expectations.

“Our second quarter results demonstrate incredibly strong momentum across our business, with record revenue and substantial growth in our backlog. The increased demand for our unique Earth intelligence, highlighted by pivotal contracts including one in collaboration with the German government, one with NATO, and others with the U.S. Department of Defense, underscores the critical role Planet plays in addressing global challenges and supporting peace and security,” said Will Marshall, Planet’s Co-Founder, Chief Executive Officer and Chairperson.

Planet Labs pulled off the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 83.2% since reporting and currently trades at $12.

We think Planet Labs is a good business, but is it a buy today? Read our full report here, it’s free.

CSG (NASDAQ:CSGS)

Powering billions of critical customer interactions annually, CSG Systems (NASDAQ:CSGS) provides cloud-based software platforms that help companies manage customer interactions, process payments, and monetize their services.

CSG reported revenues of $297.1 million, up 2.3% year on year, outperforming analysts’ expectations by 1.9%. The business had a very strong quarter with full-year revenue guidance exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

CSG scored the highest full-year guidance raise among its peers. The market seems content with the results as the stock is up 3.3% since reporting. It currently trades at $64.88.

Is now the time to buy CSG? Access our full analysis of the earnings results here, it’s free.

Slowest Q2: Broadridge (NYSE:BR)

Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions (NYSE:BR) provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies.

Broadridge reported revenues of $2.07 billion, up 6.2% year on year, in line with analysts’ expectations. It was a slower quarter as it posted revenue guidance for next quarter roughly in line with analysts’ expectations.

As expected, the stock is down 5.5% since the results and currently trades at $234.88.

Read our full analysis of Broadridge’s results here.

TransUnion (NYSE:TRU)

One of the three major credit bureaus in the United States alongside Equifax and Experian, TransUnion (NYSE:TRU) is a global information and insights company that provides credit reports, fraud prevention tools, and data analytics to help businesses make decisions and consumers manage their financial health.

TransUnion reported revenues of $1.14 billion, up 9.5% year on year. This result surpassed analysts’ expectations by 3.7%. Aside from that, it was a mixed quarter as it also logged a beat of analysts’ EPS estimates but full-year EPS guidance in line with analysts’ estimates.

The stock is down 10.8% since reporting and currently trades at $84.31.

Read our full, actionable report on TransUnion here, it’s free.

Equifax (NYSE:EFX)

Holding detailed financial records on over 800 million consumers worldwide and dating back to 1899, Equifax (NYSE:EFX) is a global data analytics company that collects, analyzes, and sells consumer and business credit information to lenders, employers, and other businesses.

Equifax reported revenues of $1.54 billion, up 7.4% year on year. This print topped analysts’ expectations by 1.5%. Zooming out, it was a slower quarter as it produced a miss of analysts’ EPS guidance for next quarter estimates.

Equifax had the weakest full-year guidance update among its peers. The stock is down 3.1% since reporting and currently trades at $251.77.

Read our full, actionable report on Equifax here, it’s free.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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